The crisis in Venezuela has captured global attention, but its impact could be felt closer to home, especially in energy markets along the Gulf Coast. Eric Smith from Tulane’s Energy Institute said, “That should result in some at least stabilization of the price of gasoline and diesel in the U.S.” Venezuela was once a major oil supplier to the United States, and many refineries in Louisiana and Texas were designed to process Venezuela’s heavy crude oil.Smith noted that restarting oil production in Venezuela would be more straightforward than rebuilding the country’s damaged refineries and pipelines. “The easiest thing to work on right now is getting the crude production back on stream and getting it shipped out of the country,” Smith said. He also mentioned that the initial impacts of Venezuela’s return to the oil market are likely to be “fairly short-term and positive.”However, some observers believe that the U.S. should focus on domestic issues. “The story they’re telling people is that they are coming to take our oil. It’s not U.S. soil, it’s Venezuela soil,” said a resident.In response to the situation, Shell stated they would not comment, while Chevron affirmed its continued compliance with all relevant laws and regulations. Smith emphasized that in the short term, this development could enhance refinery efficiency and stabilize gas and diesel prices. “If the refineries are running more efficiently, they’re going to tend to reduce their prices. And that will help all of the consumers in the country,” Smith said.
The crisis in Venezuela has captured global attention, but its impact could be felt closer to home, especially in energy markets along the Gulf Coast.
Eric Smith from Tulane’s Energy Institute said, “That should result in some at least stabilization of the price of gasoline and diesel in the U.S.”
Venezuela was once a major oil supplier to the United States, and many refineries in Louisiana and Texas were designed to process Venezuela’s heavy crude oil.
Smith noted that restarting oil production in Venezuela would be more straightforward than rebuilding the country’s damaged refineries and pipelines.
“The easiest thing to work on right now is getting the crude production back on stream and getting it shipped out of the country,” Smith said.
He also mentioned that the initial impacts of Venezuela’s return to the oil market are likely to be “fairly short-term and positive.”
However, some observers believe that the U.S. should focus on domestic issues.
“The story they’re telling people is that they are coming to take our oil. It’s not U.S. soil, it’s Venezuela soil,” said a resident.
In response to the situation, Shell stated they would not comment, while Chevron affirmed its continued compliance with all relevant laws and regulations.
Smith emphasized that in the short term, this development could enhance refinery efficiency and stabilize gas and diesel prices.
“If the refineries are running more efficiently, they’re going to tend to reduce their prices. And that will help all of the consumers in the country,” Smith said.